Government Jobs for All?

Source: American Institute for Economic Research
by Daniel Sutter

“Modern Monetary Theory (MMT) offers some unconventional policy recommendations based on the United States’ monetary sovereignty. MMT proponents also advocate government guaranteed jobs paying a living wage for all Americans. What would be the consequences of such a guarantee? … Market wages and salaries are not charity; the prices customers willingly pay for goods and services cover workers’ pay. Market-based salaries come entirely from voluntary payment and workers earn their pay by helping produce goods and services. Guaranteed jobs effectively set a minimum wage because few Americans will work for businesses offering worse compensation packages (wages and benefits). Government jobs would be far more effective in assisting low-wage workers because a minimum wage ends up pricing many out of the labor market altogether.” (11/08/21)